One of the UK’s oldest stockbrokers will fall into the hands of a US rival
One of the UK’s oldest stockbrokers will fall into the hands of a US rival.
Founded in 1792, the sale of Charles Stanley represents a massive payday for the Howard family, who own 38.2 percent of the company.
Chairman Sir David Howard and his wife Lady Valerie leave with £64 million, while his brother John Howard takes in £20 million.
Sinking Feeling: The sale of Charles Stanley, founded in 1792, spells a mammoth payday for the Howard family, who own 38.2 percent of the company
The company, which is even older than blue-chip brokers Rothschild & Co and Schroders, has agreed to a £278 million takeover by Florida-based Raymond James. The offer of 515 pence per share represents a 43.5% premium to Wednesday’s share price. Shares in Charles Stanley, listed on the London Stock Exchange in 1852, rose 42.8 percent.
Sir David said: ‘When I started in 1967, Charles Stanley was a small partnership and had little or no value in itself.
‘It split from a Yorkshire bank that started in 1792, and its history as a member of the London Stock Exchange goes back to the 1850s. But it remained very small until the 1960s. We intend to remain a member firm and continue to grow, but now as part of the Raymond James group.”
Both boards have approved the deal and a third of investors support the acquisition. The company will continue to operate under the Charles Stanley name. David Howard and CEO Paul Abberley will keep their jobs.